PBOC Governor Pan Gongsheng touted yuan assets to investors in Bangkok, outlining plans to expand their role in global markets. At Deutsche Bank's Emerging Markets Conference, Pan highlighted the resilience of Chinese assets, particularly government bonds, emphasizing their diversification benefits for portfolios. He pitched China's assets against the backdrop of a global bond-market selloff driven by persistent inflation and mounting public debt.
China stood out as bonds moved opposite to developed markets, with 10-year and 30-year debt yields touching their lowest levels in over a year. Pan cited data showing an 80/20 yuan bond and equity portfolio delivered higher annual returns over two decades with lower volatility than global benchmarks. China's bonds returned about 10% to dollar-based investors over the past 12 months, while the yuan neared a four-year high.
In comparison, global debt lost 2% and US Treasuries dropped 1.5%. The CSI stock index lost over 9%, versus a 15% gain for the MSCI All-Country World Index. The speech resonated with roughly 250 investors, about 100 of whom had to stand.
A renewable-energy investor said the data-driven presentation made his company more serious about issuing yuan-denominated bonds and allocating to Chinese equities. Pan also promised to align yuan bond rules with global standards and promote their acceptance as collateral at international clearing houses.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing